In 2025, several major Indian corporations undertook strategic demergers to streamline operations, unlock shareholder value, and focus on core business areas. These corporate restructurings allowed companies to create specialised entities, enabling greater operational efficiency, targeted growth, and improved financial performance. This trend reflects a broader shift in corporate strategy as businesses adapt to evolving market demands, regulatory frameworks, and technological advancements.
Following are four notable companies that completed significant demergers in 2025:
ITC Limited
With a market cap of Rs. 5.02 lakh crores, the stock is currently trading in the green at Rs. 401 on BSE. ITC Hotels Ltd. (ITCHL) was incorporated in July 2023 as a wholly owned subsidiary of ITC Limited. On 14th August 2023, the Boards of ITC and ITCHL approved a Scheme of Arrangement for the demerger of ITC’s Hotels Business on a going concern basis, subject to the required statutory and regulatory approvals. The Scheme was subsequently cleared by the NCLT, Kolkata Bench, on 4th October 2024.
Under the Scheme, effective 1st January 2025, the Hotels Business of ITC – comprising all associated assets and liabilities, except ITC Grand Central, Mumbai – was transferred to ITCHL. The transfer also included ITC’s shareholdings in several hospitality subsidiaries and associates, namely Fortune Park Hotels Limited, Bay Islands Hotels Limited, Landbase India Limited, WelcomHotels Lanka (Private) Limited, Srinivasa Resorts Limited, International Travel House Limited, Gujarat Hotels Limited, and Maharaja Heritage Resorts Limited.
ITC Limited is a diversified conglomerate with businesses spanning fast-moving consumer goods (cigarettes & cigars, foods, personal care products, education & stationery products, safety matches and agarbattis), paperboards, paper and packaging, and agri business.
Raymond Realty Limited
With a market cap of Rs. 3,879 crores, the stock moved up by nearly 1 percent on BSE, rising to Rs. 585.95 on Tuesday. Raymond Realty was formally demerged with effect from 30th April 2025, a move that simplified Raymond Limited’s corporate structure and strengthened business focus.
The demerger and separate listing of Raymond Realty were completed on 1st July 2025. As per the approved scheme, Raymond Limited shareholders received one share of Raymond Realty for every share held. The NCLT order, dated 4th July 2025, further reorganised the group into two principal subsidiaries aligned to the aerospace and defence and automotive engineering segments.
Earlier, the Lifestyle business was listed as Raymond Lifestyle Limited on 5th September 2024, while the Real Estate business has now been listed as Raymond Realty Limited on 1st July 2025. Post this restructuring, Raymond Limited now comprises the engineering business. Meanwhile, in 2023, Raymond Limited divested its FMCG business, continuing its strategy of streamlining operations and sharpening its focus on core segments.
Siemens Limited
With a market cap of Rs. 1.15 lakh crores, the stock is currently trading in the red at Rs. 3,242.55 on BSE. On 18th December 2023, the Board of Siemens Limited authorised the management to initiate exploratory steps to evaluate a potential demerger of the company’s Energy business, following requests from certain promoters.
Finally, the demerger of Siemens India and Siemens Energy India Limited was completed effective 1st March 2025, resulting in two independent companies with sharper business focus, each concentrating on its core activities, portfolios, and capital allocation.
Siemens Limited is engaged in the business of offering products, integrated solutions for industrial applications for manufacturing industries, drives for process industries, intelligent infrastructure and buildings, efficient and clean power generation from fossil fuels and oil and gas applications, transmission and distribution of electrical energy and for passenger and freight transportation, including rail vehicles, rail automation and rail electrification systems.
Aditya Birla Fashion Limited
With a market cap of Rs. 10,483.3 crores, the stock is currently trading in the red at Rs. 85.76 on BSE. In FY25, Aditya Birla Fashion and Retail Limited (ABFRL) announced the demerger of its Madura Fashion & Lifestyle (MFL) business, creating two separate entities – ABFRL and Aditya Birla Lifestyle Brands Limited (ABLBL). The demerger took effect on 1st May 2025.
ABLBL was subsequently listed as an independent company on the stock exchanges in June 2025. Through this restructuring, ABFRL continues to operate one of the most comprehensive brand portfolios in Indian fashion, catering to diverse lifestyles, age groups, and occasions.
Aditya Birla Fashion and Retail Limited is engaged in the business of manufacturing and retailing of branded apparel/accessories and runs a chain of apparel and accessories retail stores in India.
Aditya Birla Group’s B2C portfolio features a diverse range of prominent brands, including Allen Solly, American Eagle Outfitters Inc., Bewakoof, House of Masaba, Louis Philippe, Pantaloons, Peter England, Sabyasachi, Reebok, Van Heusen, and Wrogn.
Written by Shivani Singh
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